By Paul A. Harris
St. Louis, Feb. 3 - Hilcorp Energy I, LP and Hilcorp Finance Co. priced a $300 million issue of 8% 10-year senior unsecured notes (expected ratings B2/BB-/) at 98.315 to yield 8¼% on Wednesday, according to an informed source.
The yield printed at the tight end of the 8 3/8% area price talk.
Deutsche Bank Securities Inc. was the left bookrunner for the quick-to-market deal.
Barclays Capital Inc., J.P. Morgan Securities Inc., BMO Nesbitt Burns and Wells Fargo Securities were joint bookrunners.
Proceeds will be used to pay down a credit facility and for general corporate purposes.
Hilcorp is a Houston-based exploration and production company.
| Issuer: | Hilcorp Energy I, LP and Hilcorp Finance Co.
|
| Amount: | $300 million
|
| Maturity: | Feb. 15, 2020
|
| Securities: | Senior unsecured notes
|
| Left bookrunner: | Deutsche Bank Securities Inc.
|
| Joint bookrunners: | Barclays Capital Inc., J.P. Morgan Securities Inc., BMO Nesbitt Burns, Wells Fargo Securities
|
| Coupon: | 8%
|
| Price: | 98.315
|
| Yield: | 8¼%
|
| Spread: | 455 bps
|
| Call protection: | Five years
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 3
|
| Settlement date: | Feb. 8
|
| Expected ratings: | Moody's: B2
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A for life
|
| Price talk: | 8 3/8% area
|
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